10Y Treasury Yield Rises To 3% Ahead of Fed Minutes

By Michael Aneiro

A strong reading on the latest ADP jobs report sent the ten-year Treasury yield higher this morning, touching 3.001% from an opening level of 2.947%, per Tradeweb data. It’s held fairly steady over the last couple of hours, most recently at 2.999%, as the note’s price is down 16/32 on the day, while the 30-year bond is down 22/32 to yield 3.922%. The ADP report is widely viewed as a preview of the Labor Department’s monthly employment report, which is due out Friday morning.

Next up today is the release at 2 p.m. EST of the minutes from the last Federal Reserve policy committee meeting. Wall Street Journal Fed-watcher Jon Hilsenrath says the minutes are likely to show more agreement than discord about the committee’s decision last month to start tapering the central bank’s $85 billion monthly bond purchases. The WSJ’s Michael S. Derby wrote that San Francisco Fed President John Williams said yesterday that he fully supported the Fed’s decision to start tapering and that he expects to see the Fed’s bond-buying purchases end at some point this year.